Microsoft's Cloud Computing Strategy: A Response to the Threat of Windows and Office Monopolies

Microsoft's strength lies in its two monopolies - Windows and Office. However, the rise of cloud computing threatens these monopolies. With high-speed internet connections, it is becoming increasingly attractive to store data and run applications remotely on server farms owned by other enterprises. Microsoft recognized the potential importance of cloud computing in 2006-2007 and decided to aggressively invest in it. The company made heavy investments in large-scale server farms, developed a new operating system called 'Azure', rewrote many of its own applications to run on Azure, and embraced a new business model of pay-as-you-go. Microsoft hopes to do well in the emerging market of cloud computing.